Swiber’s 1Q12 profit jumps 5.9% as work on contracts starts rolling

The marine services company recorded a net income of more than US$12 million as it  delivers services for the various contracts secured in 2010 and 2011.

The company has commitments for companies iin Southeast Asia and South Asia regions.

Swiber’s net profit for 1Q12 stands at US$12.5 million. Revenue, meanwhile, rose 29.1% to US$194.4 million as compared to US$150.6 million in 1QF11. 

Gross profit surged 57.3% to US$38.4 million in 1QFY2012. Correspondingly, gross margin improved by 3.6 percentage points to 19.8% as at 1QFY2012. 

In a statement, the company said the increase in net profit was offset by lower operating income, higher administrative and other operating expenses in line with business expansion, as well as lower share of profit from associates and joint ventures. 

Francis Wong, Group Chief Executive Officer and President of Swiber said, “Our revenue growth bears testament of our strong execution, in terms of delivering on contracts won in the last two years. Even so, we have not been resting on our laurels.”

Wong added that Swiber “remain[s] confident in the long-term value of oil” despite the worries in the world economy.

According to IEA, oil demand is expected to rise to 89.9 million barrels a day in 2012, with demand strengthening through end 2012 as economic growth accelerates.

“Notwithstanding uncertainties in the world economy, the global offshore oil production has been forecasted to grow steadily… The constant need for repair and maintenance of oil field infrastructure to ensure smooth production from the wells… should translate into robust demand for offshore support services, which we are well-positioned to capture,” he said. 

Wong said that Swiber is intent on breaking into new markets such as the Gulf of Mexico and the Middle East in the coming years aside from working on offshore projects worth US$1.2 billion.